Skip to main content

What are we looking for?

Sustainable dividends from food-industry players offering plant-based “meat.”

The screen

Beyond Meat Inc. – with its plant-based protein designed to taste like meat – continues to command consumer and investor attention. Shares of the company behind the Beyond Burger have soared 539 per cent since the May initial public offering.

Plant-based burgers will likely keep gaining popularity, although early market entrants may falter. Far better, we think, for dividend investors to focus on food-industry leaders with strong existing businesses bolstered by meatless offerings – and not businesses entirely dependent on them.

Story continues below advertisement

Among U.S. and Canadian food makers and sellers, we pinpointed meatless market participants with growth potential and dividends. We then applied our TSI Dividend Sustainability Rating System; it awards points based on key factors:

  • One point for five years of continuous dividend payments – two points for more than five;
  • Two points if it has raised the payment in the past five years;
  • One point for management’s commitment to dividends;
  • One point for operating in non-cyclical industries;
  • One point for limited exposure to foreign currency rates and freedom from political interference;
  • Two points for a strong balance sheet, including manageable debt and adequate cash;
  • Two points for a long-term record of positive earnings and cash flow sufficient to cover dividend payments;
  • One point if the company is an industry leader.

Companies with 10 to 12 points have the most secure dividends, or the highest sustainability. Those with seven to nine points have above-average sustainability; average sustainability, four to six points; and below average sustainability, one to three points.

More about TSI Network

TSI Network is the online home of The Successful Investor Inc. – the group of widely followed Canadian investment newsletters by editor and publisher Pat McKeough. They include our award-winning flagship newsletter, The Successful Investor. The TSI Best ETFs for Canadian Investors is the latest. TSI Network is also affiliated with Successful Investor Wealth Management.

What we found

Our TSI Dividend Sustainability Rating System generated six stocks. Unlike Beyond Meat, they pay dividends. U.S. chicken giant Tyson Foods Inc. recently unveiled plant-based nuggets. Switzerland’s Nestlé SA launched its own plant-based burgers in Europe, including at 1,500 McDonald’s outlets in Germany. Restaurant Brands International Inc.’s Tim Hortons sells Beyond Meat breakfast sandwiches across Canada, while in the United States its Burger King chain serves the meatless burgers of privately held Impossible Foods Inc. Canada’s Maple Leaf Foods Inc. keeps expanding in non-meat products, including its Lightlife Burger. A&W Revenue Royalties Income Fund licenses its trademarks to A&W Food Services of Canada Inc. – the privately held operator of the fast-food chain – and also benefits from the chain’s successful promotion of the Beyond Meat Burger. And finally, Loblaw Cos. Ltd. keeps spurring sales with its President’s Choice meatless proteins.

We advise investors to do additional research on any investments we identify here.

Plant-based 'meat' stocks for the finicky dividend investor

Ranking*CompanyTickerDividend Sustainability RatingPointsDiv. Yield %Market Cap ($Mil)**Recent Price $**1Yr Total Return %
1Nestle S.A. (ADR)NSRGY-OTCHighest102.0315,608.2102.6935.5
2Loblaw Companies Ltd.L-THighest101.924,691.366.6122.0
3Restaurant Brands International Inc.QSR-NAbove Average92.932,511.568.0414.1
4A&W Revenue Royalties Income FundAW-UN-TAbove Average84.4526.242.4232.7
5Maple Leaf Foods Inc.MFI-TAbove Average82.03,680.028.87-11.1
6Tyson Foods Inc.TSN-NAbove Average81.929,189.479.5212.8

Dividend Advisor

*Ranking is determined by TSI Dividend Sustainability Score. Where overall points are the same, analysts considered P/E, dividend yield and industry outlook to decide final placements.

**Share price and market cap are in native currency.

Scott Clayton, MBA, is senior analyst for TSI Network and associate editor of TSI Dividend Advisor.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Report an error Editorial code of conduct
Tickers mentioned in this story
Unchecking box will stop auto data updates
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter